I will leave the suppossitions about profit margins alone but will comment on pricing.
My own observation has been that new books that I am considering tend to be priced in the teens and are inelligible for discounts. However, after waiting several weeks I noted with many of them the price has dropped and discounts can be applied. This cold be a result of the type of books I read; I am not into pop fiction.
It stands to reason that a publisher starts at a premium price then drops the price as time passes; it is a form of price discrimination. Those that must read a new book immediately and are willing to pay a premium to do so pay a higher price than the more price sensitive. I am betting that if I were willing to wait years to buy some of those books, they would end up in the $4.99 or less category.
The best approach is to pick your price point on a book and not buy until it reaches it. for me, there are books I would read if the price were $0. For those, I go on the waiting list at the library.
|